Rank Group Posts £450M First-Half Revenue Jump
The Rank Group posted first-half revenue growth, with shares gaining on the results. The FTSE 250 operator of Mecca Bingo and Grosvenor Casinos reported group underlying like-for-like net gaming revenue (NGR) up 6% to £419.8m for the six months ending 31 December.
Venue NGR rose 5% to £296.1m, while digital NGR increased 8% to £123.7m. Underlying operating profits climbed 22% to £40.6m. Interim pre-tax profits dropped 19% to £23.9m due to £9.7m of one-off costs. The company raised its interim dividend 54% to 1p.
Grosvenor drives growth as gaming machines outperform
Grosvenor venues posted 6% revenue growth, led by gaming machines which rose 11% year-on-year. Venues with new gaming machine installations saw revenues climb 16% during the first half.
Statutory Group operating profit fell to £31.3m from £35.2m, affected by a £6.5m loss from payment fraud in Spanish operations. Separately disclosed items totalled £9.7m.
Quarterly performance showed Q1 strength followed by softer Q2 results. The second quarter reflected weaker consumer confidence around the Autumn Budget period. Christmas and New Year trading proved strong across all businesses, with January performance meeting expectations.
Rank maintained its medium-term target of £100m annual operating profit. Average weekly NGR at Grosvenor venues reached £7.8m, up 6% year-on-year.
Digital outperforms venues, Q1 leads growth
Digital operations outpaced venue growth, with underlying like-for-like NGR rising 8% to £123.7m. Venues posted a 5% increase to £296.1m.
Grosvenor online led digital performance with 17% growth. Mecca digital grew 5%, while other proprietary brands fell 7%. UK digital market growth reached 9%.
Q1 delivered 9% overall growth, driven by digital operations up 13% to £61.6m. Grosvenor online surged 31% during this quarter.
Q2 growth slowed to 3%, reflecting “tougher comparables with what was a strong Q2 in the prior year”. The slowdown coincided with “weaker consumer confidence in the period prior to, and immediately following, the Autumn Budget”.
Christmas and New Year trading was strong across all businesses. January performance met management expectations, indicating revenue stabilised after Q2 weakness.
Rank faces regulatory headwinds in second half
Rank Group confronts significant challenges for the remainder of its fiscal year. The UK government’s Remote Gaming Duty (RGD) increase from 21% to 40%, effective April 2026, will reduce operating profit by approximately £40m before mitigating actions.
Chief Executive John O’Reilly called this “a very significant blow to the regulated betting and gaming industry in the UK”. The UK Digital business faces an additional £46m in duty costs, partially offset by a £6m benefit from bingo duty abolition.
The National Living Wage rise of 4.1% to £12.71 adds roughly £5.5m in costs, primarily hitting Grosvenor and Mecca venues.
Profitability will be particularly affected in Q4 when these changes take effect. The Group expects some trading variance in Q3, followed by increased cost pressures in the final quarter.
Rank has implemented mitigation strategies that are “well advanced”. Management remains confident in delivering full-year performance aligned with market expectations. The company maintains “a strong balance sheet and expects to operate well within its financial covenants”.
